As a business owner, you already juggle countless priorities, from serving customers to managing operations. Now, with the Digital Markets, Competition and Consumers Act 2024 (DMCC Act), there are new rules on the horizon that could change the way you do business. These updates are designed to protect consumers, but they also bring opportunities for businesses like yours to build trust and stand out in the market.
In this guide, we’ll break down the key changes, show you how they might impact your operations, and give you clear steps to ensure you’re not just compliant but ahead of the curve.
The Digital Markets, Competition and Consumers Act 2024 (DMCC Act) strengthens the enforcement powers of the Competition and Markets Authority (CMA) and introduces new rules to protect consumers in today’s digital marketplace. Here’s a clear breakdown of the key changes:
For the first time, the CMA can take direct action against businesses that break consumer protection laws without needing court approval. This gives the CMA greater power to enforce the rules quickly and effectively.
Key powers include:
These new powers mean businesses must take a proactive approach to ensure their practices comply with the law.
The DMCC Act expands the list of practices that are automatically considered unfair and illegal, including:
Under the Act, it is illegal to create, pay for, or publish fake reviews. Businesses are also required to take “reasonable and proportionate steps” to prevent fake reviews from appearing on their platforms.
All costs, including fees and taxes, must be clearly displayed upfront in adverts and product listings. Hidden fees added at checkout are no longer allowed.
Looking ahead, more rules could be added to this list, targeting practices like “dark patterns”—design techniques that manipulate consumers into actions they might not have chosen otherwise.
The Act introduces new safeguards to prevent “subscription traps,” ensuring consumers fully understand and control their subscriptions. The key requirements include:
Businesses must clearly outline costs, cancellation rights, and how subscription terms may change.
Consumers can cancel a subscription within 14 days and get a full refund, with no penalties.
Businesses must remind customers before auto-renewals or the end of free trials.
Cancelling a subscription must be easy, with no unnecessary steps or obstacles.
The CMA has also been given broader powers to address non-compliance, including:
Businesses may need to offer refunds, improve customer information, or make changes to their processes to better protect consumers.
The CMA can require businesses to change their websites or apps to comply with the rules. This could include displaying warnings, restricting access to non-compliant platforms, or making design adjustments.
These changes mean the CMA can act more quickly and effectively to protect consumers, making it critical for businesses to review and update their practices now to stay compliant and avoid penalties.
The Digital Markets, Competition and Consumers Act 2024 (DMCC Act) has a phased implementation plan, with different parts of the Act coming into force over the next two years. Here’s a breakdown of the key dates and what they mean for your business:
Introduction of the digital markets regime and enhanced competition law enforcement powers.
Implementation of consumer law enforcement measures, including the Competition and Markets Authority's (CMA) authority to issue monetary penalties for consumer law breaches, and new consumer protections addressing issues like fake online reviews and drip pricing.
Enforcement of new rules concerning subscription traps and alternative dispute resolution.
With the CMA’s expanded powers, businesses are at greater risk of penalties for non-compliance. Enforcement actions could also lead to increased consumer claims, particularly in areas like hidden fees and fake reviews.
Online sellers and platforms must ensure transparency in pricing and review authenticity. These areas are expected to be a key focus for the CMA.
Businesses should monitor updates to the “blacklist” of unfair practices, as additional rules may target emerging issues such as deceptive design practices.
Here’s how your business can prepare for the changes and minimise risks: